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Hi I recently terminated my lease with BMW who have came back asking me to pay for excess mileage on a pro rata basis and for two very small scratches. I wrote to them stating that I was VT the agreement in terms of Section 99 of the CCA 1974 and the liability of the debtor on termination is set out in Section 100 of the Act.
Section 100 (1) specifies the extent of the debtors liability to the creditor in that event namely the amount by which one half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before termination. It also stated on the agreement between us headed "Termination Your Rights" If you have already paid at least £xx,xxx.xx plus any overdue installments and taken reasonable care of the goods you will have not have to pay any more.
I have since received a further letter from them citing " excess mileage is chargeable under the provision set out in section 99 (2) of the Consumer Credit Act. This section specifically states that the right to Voluntary Terminate does not affect any liability under the agreement which has accrued before the termination. As your mileage was accrued before you ended your agreement, we are able to invoice you for this.
Also sub section 100(4) advises that "if the debtor has contravened an obligation to take reasonable care of the goods or land, the the amount arrived at under section (1) shall be increased by the sum required to recompense the creditor for that contravention, and sub section (2) shall have effect accordingly. We would consider the the additional mileage above the pro rata allowance to have put the vehicle out of good condition in line with your signed agreement. The additional mileage accrued would affect the overall condition of the vehicle including wear on the engine. I must point out that the agreement was for 8,000 miles and when it was handed back after 3 years and 4 months it had done 51,500. May I also point out however that the vehicle was regularly serviced when the indicator lights came on so I cannot see how the additional miles in excess of the agreement would have had any affect given that the vehicle was serviced in accordance with BMW's recommended guidelines.
They finish by stating that under their complaints procedure this is their final response and that if I am not satisfied with it I have the right to contact the financial Ombudsman Service but must do within 6 months of the letter. They make no threats of action but state that they hope I understand their position. They make no mention of my rights under the Act or any reference to the agreement that tells me I can VT with nothing else to pay as long as I have paid £xx,xxx.xx.
Can you please advise as to what I should do next? Do I need to contact the Ombudsman to raise a complaint under the act and should I write back to BMW advising them that I intend to take the matter up with the Financial Ombudsman. I look forward to your response.
Section 100 (1) specifies the extent of the debtors liability to the creditor in that event namely the amount by which one half of the total price exceeds the aggregate of the sums paid and the sums due in respect of the total price immediately before termination. It also stated on the agreement between us headed "Termination Your Rights" If you have already paid at least £xx,xxx.xx plus any overdue installments and taken reasonable care of the goods you will have not have to pay any more.
I have since received a further letter from them citing " excess mileage is chargeable under the provision set out in section 99 (2) of the Consumer Credit Act. This section specifically states that the right to Voluntary Terminate does not affect any liability under the agreement which has accrued before the termination. As your mileage was accrued before you ended your agreement, we are able to invoice you for this.
Also sub section 100(4) advises that "if the debtor has contravened an obligation to take reasonable care of the goods or land, the the amount arrived at under section (1) shall be increased by the sum required to recompense the creditor for that contravention, and sub section (2) shall have effect accordingly. We would consider the the additional mileage above the pro rata allowance to have put the vehicle out of good condition in line with your signed agreement. The additional mileage accrued would affect the overall condition of the vehicle including wear on the engine. I must point out that the agreement was for 8,000 miles and when it was handed back after 3 years and 4 months it had done 51,500. May I also point out however that the vehicle was regularly serviced when the indicator lights came on so I cannot see how the additional miles in excess of the agreement would have had any affect given that the vehicle was serviced in accordance with BMW's recommended guidelines.
They finish by stating that under their complaints procedure this is their final response and that if I am not satisfied with it I have the right to contact the financial Ombudsman Service but must do within 6 months of the letter. They make no threats of action but state that they hope I understand their position. They make no mention of my rights under the Act or any reference to the agreement that tells me I can VT with nothing else to pay as long as I have paid £xx,xxx.xx.
Can you please advise as to what I should do next? Do I need to contact the Ombudsman to raise a complaint under the act and should I write back to BMW advising them that I intend to take the matter up with the Financial Ombudsman. I look forward to your response.
) xx
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